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Landlords eye up family homes

Landlords eye up family homes

Category: Mortgages

Updated: 06/09/2011
First Published: 06/09/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Landlords are increasingly looking to snap up family homes to meet the need for larger properties in the rental market.

Once the preserve of younger people and couples, the private rental sector has seen a significant rise in the number of families in recent years.

The move is being driven by a combination of an increasing strain on the social housing market, problems in the economy, an uncertain job market and a continuing constraint in the mortgage sector.

The trend is being seized upon by landlords, according to research by Paragon, with many focusing on purchasing family-sized housing over the next few months.

Of the landlords that intend to dip into the property market over the next three months, more than four in ten (41%) said they would look to buy semi-detached homes – up from 28% in the second quarter of the year.

Indeed, more than one in five (22%) have stated their intention to add one or more detached abodes to their portfolios.

Figures show that this type of property is in high demand; nearly half of landlords have family as tenants, making them the fourth largest tenant group behind young couples, professionals and young singles.

Nigel Terrington, chief executive of Paragon Group, said that the trend of families looking to the private rental sector was one he expected to see continue.

"Young couples and single person households will continue to account for a large proportion of the private rental sector, but I think that over the net few years we will see more families making use of the flexibility and affordable accommodation that the sector provides."

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